Alibaba's cloud revenue in the second quarter surged 34% driven by AI workloads. Alibaba's cloud revenue is on an annual revenue run rate is more than $22 billion.
The Chinese retail and cloud giant said second quarter revenue for its Cloud Intelligence Group was $5.59 billion, up 34% from a year ago. Earnings before taxes, interest and amortization were $506 million in the second quarter.
Alibaba said it is investing heavily on building its vertical AI stack. The company is also betting heavily on open source large language models. As of Oct. 31, Alibaba's open source Qwen models have led to more than 180,000 derivative models on Hugging Face.
The company added that it is seeing "accelerating adoption of our AI products across a broad range of enterprise customers, with a growing focus on value-added applications including coding assistants."
Alibaba said it will continue to invest in AI products and its AI infrastructure.
In September, Alibaba Cloud outlined upgrades to its stack including new servers, networking, distributed storge and computing clusters. That infrastructure complements what Alibaba calls Platform for AI and model training and inference services.
Alibaba Cloud's stack includes:
- And upgraded set of databases, containers, storage and compute services optimized for data and AI workloads.
- Qwen3 family of models including Qwen3-Max, which has instruct and thinking versions, and Qwen3-Omni, a multilingual and multimodal model.
- The upcoming Wan2.5 video generation model.
- An upgraded agent development and application platform led by Model Studio.
- Model-Studio-ADK (Agent Development Kit) designed enterprise use cases.
- An upgraded AgentBay, a multimodal cloud operating environment and expert agent platform.
- AgentOne, an enterprise AI application platform.
